Media Report: Chinese officials take control of Liaoning Bora Enterprise

According to media reports, the Chinese government officials have taken over the management of private oil refiner Liaoning Bora Enterprise Group amid a tax probe that could lead the company to heavy fines or even insolvency. 

Liaoning Bora Enterprise is one of the biggest private refineries in China, with an annual capacity of 20 million tons. The main role of the interim management is to ensure the company’s continued operations while seeking new investors. The Chinese government would remain in control until Liaoning Bora completed the restructuring process or in the worst-case scenario, declaring bankruptcy.

Liaoning Bora Enterprise owns 50% of Bora LyondellBasell Petrochemical Co Ltd – a joint venture with LyondellBasell in Liaoning province of north-eastern China. Bora LyondellBasell Petrochemical started up in 2020 and produces 1.1 million tons/year of ethylene, 600,00 tons/year of PP, 450,000 tons/year of LLDPE, and 350,000 tons/year of HDPE. 

It is assumed that the Chinese government has now also taken over the 50% share previously owned by Liaoning Bora Enterprise in Bora LyondellBasell Petrochemical. The company has not commented on the issue at the time of this report. 

In July 2021, Liaoning Bora Enterprise sold a controlling share of 51.09% in Bora New Materials’ 600,000 tons/year ABS plant to Kingfa Technology. After the sales, Liaoning Bora Enterprise still owns 40.76% of Bora New Materials, which could be now controlled by the Chinese officials, while the remaining 8.15% belong to Panjin Xinhai.